Owning investment properties is a great way to generate monthly income. These properties provide an excellent opportunity to earn solid income month after month. But renting or leasing to everyday tenants will only get you so far. On the other hand, short-term rentals like Airbnb properties tend to make good money in a temporary situation.
So, if you’re wondering if you’re better off being a landlord as opposed to an Airbnb host, you’ve definitely come to the right place. While this situation might not be perfect for everyone, it’s definitely great if you believe being a host is a good fit for you based on your specific needs.
As a host, I’ve learned some of the biggest reasons why it’s ab excellent idea to become an Airbnb host. So if you’re interested in discovering these reasons, please stick around to learn about the truth.
Pro #1: Becoming an Airbnb Host Provides Greater Flexibility
In some cases, you may not want to have a guest in your home. Maybe you plan to go on vacation for a month and have no one to look after the property. Or maybe you need to use the home yourself for personal reasons. Whatever the case may be, just having this additional flexibility is an outstanding option.
On the other hand, when you become a landlord you do not have this additional flexibility. Your tenant is going to live and stay in your rental unit for as long as their lease remains. So if you decide to go away for a month or more, you’ll need to have someone on call to provide maintenance services, collect the rent, and handle other important responsibilities. This is often inconvenient but absolutely necessary if you’re going to succeed as a landlord and a property investment specialist.
Other situations where hosting provides greater flexibility include:
- You have friends visiting from out of town and plan to stay for a month or longer. Instead of forcing them to stay in a hotel for the duration of their visit, you can offer them your hospitality by letting them stay in your Airbnb short-term rental. You could either let them stay for free or charge them a nominal fee. It’s just good to know that you have the option if the situation ever arises.
- You discover that you need to make a major repair. When you have tenants, this can be a major inconvenience because they need to be home to let the repair people in during the day. When you have an Airbnb rental unit, you have the option to leave the house or apartment vacant until all of the repairs are finished.
In the situations presented above, a typical landlord would have absolutely no recourse or flexibility to attack these problems head-on. But as a host, you can just block off these dates and make your home unavailable until it’s time to start renting to guests again.
Also Worth Reading: Should You Rent Yearly or Regular?
Pro #2: You Have Greater Control as an Airbnb Host
Having more control over your property is definitely a huge benefit of becoming a host as opposed to a traditional landlord. After a tenant signs a long-term lease, you begin to lose control over your own property even if you might not realize it.
Your tenant is going to live in the property day after day. You do not have the right to walk in whenever you want to take care of your home. Landlords often tell horror stories of tenants that damage the property and homes that require significant renovations before new renters can take over.
As an Airbnb host, you’re going in and out of your home on a regular basis. So repairs and other problems aren’t going to get too far out of hand due to lack of access.
You also have full control over how you get paid as a host. In fact, it’s even better because your guest is going to pay you online before they ever actually step foot in your home. So you don’t have to worry about chasing down tenants in an effort to collect their rent month after month. Many landlords love the payment setup through Airbnb.
Pro #3: The Potential to Earn Greater Income
Last but not least, Airbnb hosts have the potential to earn greater income as opposed to a typical landlord. Certain areas are in very high demand, which means you can basically charge hotel prices and have guests occupying your home at high rental fees.
Some locations are going to do better than others. So please keep this in mind when you first decide to become a host through Airbnb.
Not sure where to get started? Visit this page to learn how to get started with AirBNB. You’ll learn all the important factors you need to know before setting up your own rental business.